Late-Arraigned Lawyer Said to Be Cooperating in Scruggs Case
A delay in the arraignment of Mississippi lawyer Timothy Balducci is fueling reports and speculation that he is cooperating in the bribery case against Richard ”Dickie” Scruggs and other co-defendants.
Sources told the Wall Street Journal (sub. req.) that Balducci began cooperating in the criminal probe at some point after he offered a $40,000 bribe to Judge Henry Lackey. The judge reported the bribe offer and cooperated in the probe.
Balducci was arraigned yesterday, nearly a week after the arraignment of Scruggs, his son and law partner Zach, and two others, the Associated Press reports. He pleaded not guilty, as have the others charged in the case.
The indictment claims Balducci approached Lackey and offered an initial bribe of $40,000 to resolve an attorney fee dispute in favor of Scruggs’ law firm in Hurricane Katrina-related litigation. The indictment also claims Balducci delivered the money while Scruggs’ firm created false documents showing the lawyer would receive money for jury consulting work.
Scruggs had initially denied that his firm would withdraw from all Hurricane Katrina work as a result of the indictment. But yesterday, the firm’s clients were informed in a letter (PDF) that the Scruggs Law Firm had withdrawn from the group of lawyers suing insurers over Hurricane Katrina coverage, the Wall Street Journal Law Blog reports.
Despite the indictment, Dickie Scruggs and his wife threw a Christmas party on Saturday, attended by nearly 200 people from his hometown of Oxford who are rallying to his defense. Scruggs’ lawyer maintains the charges are unfounded.
